The problem is that pay day loans are typically pretty small <$500 and meant to be short duration 1-8 weeks, meaning that if it’s a $500 loan out for one month

The problem is that pay day loans are typically pretty small <$500 and meant to be short duration 1-8 weeks, meaning that if it’s a $500 loan out for one month @15% that is $6.2 in interest, it is going to cost more than that to process and administer the loan, let alone funding costs, default risk, etc.